AAPICO HITECH PLC [AH] Presentation for FS 2018 financial statements - PowerPoint PPT Presentation

AAPICO HITECH PLC [AH] Presentation for FS 2018 financial statements Opportunity Day 28 March 2019

Disclaimer The information contained in this material has been prepared by AAPICO Hitech PLC (“AH” or “AAPICO”) solely for information purpose and does not constitute an offer or invitation to sell or the solicitation of an offer or invitation to purchase or subscribe for shares in AAPICO. Some statements made in this material are forward-looking statements. These statements typically contain words such as “expects” and “anticipates” and words of similar import. Any statement in these materials that are not a statement of historical fact is a forward-looking statement that involves various risks and uncertainties. These include statements with respect to our corporate plans, strategies, and beliefs. These statements are based on our management assumptions and beliefs in light of the information currently available to us. These assumptions involve risks and uncertainties which may cause the actual results, performance, or achievements to be materially different from any future results, performance, or achievements expressed or implied by such forward-looking statements. None of the future projections, expectations, estimates or prospects in this presentation should be taken as forecasts or promises nor should they be taken as implying any indication, assurance or guarantee that the assumptions on which such future projections, expectations, estimates or prospects have been prepared are correct and exhaustive or, in the case of the assumptions, fully stated in the presentation. We assume no obligations to update the forward-looking statements contained herein to reflect actual results, changes in assumptions or changes in factors affecting these statements. Accordingly, no representation or warranty, express or implied, is made or given by or on behalf of AAPICO or any of its shareholders, directors, officers or employees or any other person as to the accuracy, completeness or fairness of the information or opinions contained in this presentation. None of AAPICO nor any of its shareholders, directors, officers or employees accepts any liability (in negligence or otherwise) whatsoever for any loss howsoever arising from any use of this presentation or its contents or otherwise arising in connection therewith. Individual situations and local practices and standards may vary, so viewers and others utilizing information contained within a presentation are free to adopt differing standards and approaches as they see fit. Products and names mentioned in materials or presentations are the property of their respective owners and the mention of them does not constitute an endorsement by AAPICO. The information contained in this presentation is only current as of the date its date. In giving this presentation, neither AAPICO nor its respective advisers and/or agents undertake any obligation to provide the recipient with access to any additional information or to update this presentation or any additional information or to correct any inaccuracies in any such information which may become apparent. You must make your own assessment of the relevance, accuracy, and adequacy of the information contained in this presentation and must make such independent investigation as you may consider necessary or appropriate for such purpose. The presentation should not be construed as legal, tax, investment or other advise. ir@aapico.com | +66-(0)-2613-1504 2

Agenda 1. Company Information 2. Automotive Industry Updates 3. Financial Performance 4. Strategy & Direction 3

AAPICO Hitech PLC

AAPICO HITECH PLC [AH] AAPICO HITECH PUBLIC COMPANY LIMITED A leading OEM automotive parts manufacturer in • Thailand with global operations through strategic partnerships in India, Portugal, USA, and China. Core businesses : OEM Auto Parts, Jigs and Dies, • Car Dealerships and Car Navigation. Index : SET / THSI Industry/Sector : Auto Main locations : Thailand, Malaysia and China. • Current price : Baht 23.20* 52 weeks range : Baht 21.50 – 40.00 Market Cap : Baht 7,484 million* Registered and paid-up capital of Baht 322.58 • P/E (YTD) : 5.32* million, comprising of 322,583,844 ordinary shares P/BV : 1.00* at par value of Baht 1 each. Dividend yield** : 5.17% TRIS / CG Rating : BBB+ / Major shareholders are Yeap Swee Chuan and • Family holding 45.52% of total capital. * Data as of March 1, 2019 ** Dividend yield is calculated based on current share price 5

AAPICO’s Vision Where do we want to go? How do we want people to remember us? TO BECOME A MANUFACTURING LEAN , GREEN, HAPPY , DIGITAL RESEARCH & DEVELOPMENT WORLD-CLASS CORPORATION CAR RETAILING AAPICO Key Fundamental Values Happy Customers Happy Employees Happy Shareholders Happy Public • S : Safety • Teamwork • Profitability • Corporate Social • Q : Quality • Look at problems as • Reasonable Dividend Responsibility • C : Cost opportunities • D : Delivery • Love Family, Company • E : Engineering and Country • M : Management • Loyalty and Honesty • Mutual Respect (Focus Digital) 6

Core Pillars of AAPICO Business Auto Part Car Technology Manufacture Dealerships IOT Connectivity & Mobility Business 7

Business Segments Car Dealerships Manufacture of Auto Parts Technology (Thailand & Malaysia) (Thailand & China) (Thailand) Stamping & Assemblies Thailand Forging & Machining Malaysia Plastic Jigs and Dies <1% of total ~64% of total revenue ~36% of total revenue revenue 8

Countries of Operations THAILAND Sales by Country Ayutthaya, Chonburi, Rayong, Samutprakarn CHINA Amata Nakorn Industrial Estate Kunshan Hitech Industrial Estate Production: Stamping & Chassis Frames Production: Stamping parts Production: Connecting rods and Forging & Machining Parts and Stamping Dies & Jigs and Copper Forging China 4% Malaysia Bangpli Industrial Estate 23% Production: Plastic Parts 2018 Amata City Industrial Estate Production: Stamping Parts Thailand Plastic Washers & Fuel Tanks 73% Mitsubishi Dealers Navanakorn & Ramindra MALAYSIA Ford Dealers Kajang & Petaling Jaya Samutprakarn & Ladprao Car dealers: Honda car 9

Major OEM Customers 10

Our Partners Joint Venture Strategic Partner Technical Partner 11

Awards and Achievements AAPICO Group has been widely recognized for its excellence in product quality, efficiency in its production processes, and continuous improvements over the years. The Company has repeatedly received awards from its customers and partners in recognition for excellent quality and delivery and contribution to growth. 12

Automotive Industry Updates

Thailand Car Production Volume Total Car Production by Quarter Jan-Dec Car Production Pick-Up/PPV Passenger Others Domestic Sales Export Sales +10.3% +9.0% ‘ 000 Units yoy yoy 700 2,168 564 1,989 548 540 600 527 517 511 486 465 500 885 221 827 224 220 214 400 212 213 200 192 300 200 1,250 332 1,130 310 313 302 295 288 276 264 100 - 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 2017 2018 Source: The Federation of Thai Industry (Automotive Industry) 14

Thailand Domestic Car Sales Volume Domestic Car Sales by Quarter Jan-Dec Domestic Sales 1-Ton Pick-Up/PPV Passenger cars Other vehicles +19.5% +17.6% ‘ 000 Units yoy 400 1,042 295 872 130 300 257 252 251 237 35 101 210 211 199 34 400 28 33 29 109 200 346 23 25 24 101 102 100 90 80 83 81 100 512 151 425 121 123 118 119 107 102 94 - 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 2017 2018 Source: The Federation of Thai Industry (Automotive Industry) 15

Thailand Export Volume Export Volume by Quarter Jan-Dec Export Volume Export Volume -2.7% +0.08% ‘ 000 Units yoy yoy 400 314 295 297 290 284 282 300 267 252 200 100 - 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 2017 2018 Source: The Federation of Thai Industry (Automotive Industry) 16

Thailand Total Industry Volume Q4 January – December # Maker 2017 2018 % 2017 2018 % 1 Toyota 74,265 90,782 +22.2% 239,551 314,498 +31.3% 2 Isuzu 41,746 52,196 +25.0% 160,550 177,864 +10.8% 3 Honda 34,497 35,375 +2.5% 127,768 128,290 +0.4% 4 Mitsubishi 20,962 23,303 +11.2% 69,737 84,560 +21.3% 5 Nissan 17,105 21,304 +24.5% 59,709 72,394 +21.2% 6 Mazda 14,734 18,720 +27.1% 51,355 70,475 +37.2% 7 Ford 16,648 16,457 -1.1% 56,156 66,064 +17.6% 14 Hyundai 1,453 1,718 +18.2% 4,917 5,264 .+7.1% Others 29,525 35,300 +19.6% 101,907 122,330 +20.0% Total 250,935 295,155 +17.6% 871,650 1,041,739 +19.5% Source: Toyota 17

Malaysia Total Industry Volume Q4 January – December # Maker 2017 2018 % 2017 2018 % 1 Perodua 53,307 59,040 +10.8% 204,887 227,243 +10.9% Honda 2 30,769 22,367 -27.3% 109,511 102,282 -6.6% 3 Toyota 20,202 12,902 -36.1% 69,492 65,551 -5.7% 4 Proton 14,695 15,511 +5.6% 70,991 64,744 -8.8% 5 Nissan 6,395 7,877 +23.2% 27,154 28,610 +5.4% 6 Mazda 2,728 4,992 +83.0% 9,730 16,038 +64.8% 7 Mercedes 3,373 3,002 -11.0% 12,344 13,463 +9.1% 14 BMW 2,985 3,027 +1.4% 10,618 12,008 +13.1% Others 16,500 15,025 -8.9% 61,898 68,775 +11.1% Total 150,954 143,743 -4.8% 576,625 598,714 +3.8% Source: MAA 18

Financial Performance 2018 vs. 2017